[Amended 5-16-1994 by Ord. No. 493; 3-15-1999 by Ord. No. 47]
As used in this Part 4, the following words and terms have the
following meanings:
BASIC SERVICE TIER
Each cable operator of a cable system shall provide its subscribers
a separately available basic service tier to which subscription is
required for access to any other tier of service. Such basic service
tier shall, at a minimum, consist of the following: all signals carried
in fulfillment of the requirements of §§ 614 and 615
of the Communications Act of 1934, as amended. Each such tier shall
also include any community, educational and governmental access programming
required by the franchise of the cable system to be provided to subscribers;
and any signal of any television broadcast station that is provided
by the cable operator to any subscribers, except a signal which is
secondarily transmitted by a satellite carrier beyond the local service
area of such station.
CABLE SERVICE
A.
The one-way transmission to subscribers of video programming,
or other programming service; and
B.
Subscriber interaction, if any, which is required for the selection
of such video programming or other programming service.
CABLE TELEVISION OPERATOR
Any person, group of persons, firm or corporation:
A.
Who provides cable service over a cable television system and
directly or through one or more affiliates owns a significant interest
in such cable system; or
B.
Who otherwise controls or is responsible for, through any arrangement,
the management and operation of such cable system.
CABLE TELEVISION SYSTEM
Any facility, consisting of a set of closed transmission
paths and associated signal generation, reception, and equipment that
is designed to provide cable service which includes video programming
and is provided to multiple subscribers within the City. Such terms
shall not include a facility that serves only subscribers in one or
more multiple-unit dwellings under common ownership, control or management,
unless such facility uses any public right-of-way. The term also shall
not include any facilities of any electric utility used solely for
operating its electric utility systems.
CITY
The City of Augusta, Maine, organized and existing under
the laws of the State of Maine, and the area within its territorial
limits.
FEDERAL DEFINITION CONTROLLING
The definitions contained in this Part
4 rely on those contained in the Communications Act of 1934 (47 U.S.C. § 521 et seq.), as it is from time to time amended and interpreted. Any ambiguity shall be resolved by reference to the federal statutes, regulations and the decisions interpreting the same.
FRANCHISE
The nonexclusive rights, whether an initial authorization
or a renewal thereof, to construct and operate a cable system along
the public ways in the City or within specified areas in the City.
It is not intended to include or supersede or otherwise affect any
license or permit required for the privilege of transacting and carrying
on a business within the City as may be required by other ordinances
and/or laws of the City.
GRANTEE
A natural person, partnership, domestic and/or foreign corporation
or entity, association, joint venture or organization of any kind
granted a franchise by the City Council under this Part 4 and its
lawful successor, transferee or assignee.
GROSS REVENUES
A.
All amounts which are charged and/or received, directly or indirectly,
by a grantee from or in connection with the operation of the system,
including, without limitation:
(1)
Any revenue received from subscribers, including but not limited
to revenue for basic service, tier service, additional outlets, FM
service, commercial service, premium service, pay-per-view service
and related per-event services, or for the distribution of any service
over the system or the provision of any service-related activity in
connection with the operation of the system, including cable modem
services from the use of the cable distribution system and non-cable
communications services;
(2)
Revenue received from subscribers for installation, change in
service and reconnection charges and similar fees;
(3)
Revenue received from subscribers for converters, remote controls
or other equipment leased or rented to subscribers in connection with
the delivery of cable services to such subscribers;
(4)
Revenue received from subscribers for service charges and late
fees attributable to delinquent accounts;
(5)
Revenue received from third parties, including advertising revenue,
home shopping commissions on the sale of products or services advertised
or promoted on the system, guide commissions, leased access payments,
and studio and other facilities or equipment rentals;
(6)
Revenue shall include any payment or consideration (including
copyright fees, but excluding any franchise fees, utility users tax
or new sales tax imposed by the City or the state or federal government)
collected for direct payment to a third party. Franchise fees paid
to the City are not deemed to be taxes; and
(7)
Gross revenue shall also include the gross revenue of any other
person which is derived directly or indirectly from or in connection
with the operation of a system to the extent that said revenue is
derived through a means which has the effect of avoiding the payment
of franchise fees to the City that would otherwise be paid herein.
B.
There shall be deducted from gross revenue:
(1)
Bad debts written off by a grantee in the normal course of its
business; provided, however, that bad debt recoveries shall be included
in gross revenue.
(2)
Refunds made to subscribers or other third parties, including
but not limited to equipment deposits.
C.
In computing gross revenue from sources other than a grantee's
subscribers, including without limitation revenue derived from the
sale of advertising, home shopping services, guide sales, satellite
dishes, the lease of channel capacity over its cable system, or any
other gross revenues attributable or allocated to a grantee in accordance
with generally accepted accounting principles but received by another
entity affiliated with the grantee, the aggregate revenue received
by the grantee from such other sources during the period in question
shall be multiplied by a fraction, the numerator of which shall be
the number of grantee's subscribers in the City as of the last day
of such period and the denominator of which shall be the number of
subscribers within all areas served by the grantee as of the last
day of such period. If these additional revenue sources can be verified
as being totally derived from within the City, the above allocation
formula is not to be used.
STATE-OF-THE-ART
A cable system with production facilities, technical performance,
capacity, equipment, components and service equal to that which has
been developed and demonstrated to be more modern than generally accepted
and used in the cable television industry for comparable markets.
SUBSCRIBER
Any person who contracts to purchase, orally or in writing,
the regular subscriber service and/or any one or more other services
as may be provided by a grantee's cable system.
TOTAL NUMBER OF SUBSCRIBERS
The number of subscribers determined as follows: In the event
a single fee is paid for service to a multiple-dwelling unit, the
number of equivalent subscribers shall be determined by dividing such
fee by the then-prevailing regular subscriber service rate and rounding
the resulting quotient to the nearest whole number. To this number
shall be added the number of all other subscribers.
[Amended 5-16-1994 by Ord. No. 493; 3-15-1999 by Ord. No. 47]
A. Application; nonrefundable fee. An application for an initial cable
television franchise shall be submitted to the Council, or its designee,
on a written application form furnished by the City, and in accordance
with the procedures and schedule to be established and published by
the Council. The application will request facts and information the
Council deems appropriate. Applications shall be accompanied by a
nonrefundable application fee of $1,000 to the order of the "City
of Augusta," which amount shall be used by the City to offset direct
expenses incurred in the franchising and evaluation procedures, including,
but not limited to, staff time and consulting assistance.
B. Grantee to pay costs of granting franchise. An applicant to whom the Council grants an initial nonexclusive franchise, in addition to the nonrefundable fee specified herein above, shall pay to the City, within 30 days of receipt of notice of the amount, an amount set by the Council, or its designee, which shall represent the remaining out-of-pocket costs incurred by the City in granting the franchise and not defrayed by fees forthcoming from the provisions of Subsection
A of this section.
C. Initial application requirements. Ten copies of the application shall
be filed with the City Clerk and shall contain such information as
the City may require, including, but not limited to:
(1) A general description of the applicant's proposed operation;
(2) A statement detailing its business or corporate organization; including
but not limited to the identification of any person, persons, or entity
holding an interest of 10% or greater in the applicant's business
and a statement disclosing interests of 10% or greater that the applicant
has in any other business, corporation or partnership and a statement
describing all intracompany relationships of the applicant, including
parent, subsidiary or affiliated companies;
(3) A written commitment to timely service and restoration of property;
(4) A schedule of proposed charges;
(5) A statement setting forth the channels to be allocated for community,
municipal, education, and leased access; a description of the production
facilities and equipment to be made available by the applicant for
access; and a statement establishing any additional revenues to be
designated for programming or programming assistance for the access
channels;
(6) If applicant is a corporation, audited financial statements for the
five previous fiscal years. If applicant is a partnership, copies
of the U.S. Partnership Return of Income (IRS Form 1065) for the five
previous fiscal years. If applicant is a sole proprietorship, copies
of personal financial statements for the five previous fiscal years;
(7) An estimated five-year operations pro forma which shall include the
initial and continuing plant investment, annual profit and loss statements
detailing income and expenses, annual balance sheets, and annual levels
of subscriber penetration. The pro forma shall also state the average
return on investment anticipated by the applicant for the five-year
operations period and shall state the method of computation thereof.
Costs anticipated for voluntary services or contributions shall, if
presented, be incorporated in the pro forma as required in this Part
4, but shall be separately identified in the pro forma;
(8) A listing of existing franchises held by the applicant, indicating
when the franchises were issued and when the networks were constructed
in each respective governmental unit, together with the name and address
and phone number of a responsible governmental official knowledgeable
of the applicant;
(9) A statement detailing the applicant's prior operational experience
in cable television systems and/or microwave service, including that
of its officers, management and any staff to be associated with the
proposed operation;
(10)
A general statement of the applicant's ability and intent to
incorporate technological improvements and advancements in the cable
television system as such improvements or advancements are generally
available in the industry; and
(11)
Any other reasonable and applicable information which the City
Council may request.
D. Request for proposals; public comment periods; evaluating applications;
public hearing.
(1) Upon filing, any initial franchise application and related documents
are public records open to inspection by the public during reasonable
hours, including specifically the regular business hours of the City
Clerk.
(2) Before issuance of a request for proposals, the City shall maintain
the proposed request for proposals on the agenda of at least two City
Council meetings for the purpose of determining any special local
needs or interest. Any citizen of the City shall have the right to
comment in writing, filed in advance, or orally at any meeting at
which the proposed request for proposals is to be considered.
(3) Following reasonable notice to the public, any initial franchise
application shall be available for inspection for a period of at least
20 days prior to the municipal officers taking action on the same.
Any citizen of the City shall have the right to comment in writing,
filed in advance, or orally at any meeting at which the franchise
applications are to be considered.
(4) Before authorizing the issuance of any such initial franchise contract,
the municipal officers shall review the applicant's legal, character,
financial and technical qualifications and the adequacy and feasibility
of the applicant's qualifications to operate a cable television system
within the City based upon information provided to the municipal officers
by the applicant and by other sources in writing or at any public
hearing or meeting of the municipal officers, and shall conduct a
public hearing thereon with at least seven days' advertised notice
prior to said public hearing.
E. Awarding an initial franchise.
(1) After examining all applications submitted pursuant to procedures
to be established by the City Council designed to assure the legal,
financial, technical and character qualifications of an applicant
to provide cable service, the Council is authorized, after a full
hearing affording due process, to grant a nonexclusive franchise conveying
the right to construct and operate a cable system within the public
ways of the City. A franchise may be awarded to the applicant which
in the Council's judgment will best serve the public interest and
whose construction and financial plans and arrangements are both feasible
and adequate to fulfill the conditions set forth in this Part 4 and
incorporated into any franchise granted.
(2) No provisions in this Part 4 shall be deemed or construed to require
the Council to grant a franchise following receipt of any franchise
application.
F. Franchise term. The term of a franchise shall be not more than 15
years from the date the franchise is accepted by the grantee by written
agreement with the City, unless terminated earlier in accordance with
this Part 4.
G. State-of-the-art modifications. The Council shall have the authority
to order a public hearing on the provision of additional channel capacity
by a grantee or on the inclusion in a grantee's cable system of "state-of-the-art"
technology or upgraded facilities. Notice of such hearing shall be
provided to the grantee and the public not later than 30 days prior
to such hearing. If, after such hearing, the Council determines that
(1) there exists a reasonable need and demand for additional channel
capacity and/or "state-of-the-art" technology or upgraded facilities,
and (2) provisions have been made or will be made for adequate rates
which will not preclude a grantee from achieving a positive net present
value on its investment in the City over the term of the franchise
and will allow a grantee a fair rate of return on its total investment
(including the investment required to provide the additional channels
and/or the "state-of-the-art" technology or upgraded facilities),
and (3) the additional channel capacity and/or "state-of-the-art"
technology or upgraded facilities will not result in economic waste
for the grantee, the Council may order the grantee to provide a specified
number of additional channels and/or specified "state-of-the-art"
technology or upgraded facilities. In considering the economic feasibility
of required cable system improvements, the City may consider whether
to extend the term of the franchise to permit the recovery of the
costs of the improvements as set forth in (2) above. Any proposed
extension of franchise shall be treated procedurally in accordance
with the procedure for franchise renewal.
H. Franchise fees.
(1) Grantee to pay City 5% of gross revenue as a franchise fee. For the reason that the streets and other public rights-of-way which are used by the grantee in the operation of its cable system within the boundaries of the City are valuable public properties acquired and maintained by the City at great expense to its taxpayers, and that the grant to the grantee to the use of said streets is a valuable property right without which the grantee would be required to invest substantial capital in right-of-way costs and acquisitions, and because the City will incur costs in regulating and administering the franchise, the grantee shall pay to the City an amount equal to 5% of the grantee's gross revenue (as defined in definition §
190-41).
(2) Franchise fee to be paid annually with statement verifying all collected
gross revenues. The franchise fee assessed shall be payable annually
to the City. The grantee shall file a complete, accurate, and verified
statement of all collected gross revenue within the City during the
period for which said annual payment is made, and said payment shall
be made to the City Treasurer not later than 60 days after the expiration
of the date for which payment is due.
(3) The City may examine all grantee records to determine accuracy of
amounts payable to City. The City shall have right to audit and to
recompute any amounts determined to be payable under this Part 4;
provided, however, that such audit shall take place within 36 months
following the close of each of the grantee's fiscal years. Any additional
amount due to the City as a result of the audit shall be paid within
30 days following written notice to the grantee by the City; said
notice shall include a copy of the audit report.
(4) Late payment of franchise fee to be charged interest at prime rate
plus 2%. In the event that any franchise payment or recomputed amount
is not made on or before the applicable dates heretofore specified,
and following notice by the City to a grantee, interest shall be charged
daily from such date at the annual rate equivalent to the then-existing
prime rate of Augusta banking institutions plus 2%.
Customer service standards shall be detailed in the franchise
agreement and shall conform to the standards established by the Federal
Communications Commission that resulted from the Cable Television
Consumer Protection and Competition Act of 1992 adopted by Congress.
[Amended 5-16-1994 by Ord. No. 493]
A. City reserves right to regulate rates. To the extent provided by
federal, state and court-adopted law, the City reserves the right
to regulate and may regulate a grantee's rates for cable service to
the fullest extent permitted by law.
B. Current rate schedule to be filed with City; 30 days' notice required
prior to rate change. A grantee, for information purposes, and for
the City to ensure nondiscrimination, shall provide the City with
a complete schedule of all current basic service and enhanced service
rates and charges, including pay TV and pay-per-view rates and charges,
and shall give 30 days' prior notice from the date of mailing to the
City and to all affected subscribers of any pricing changes or additional
charges, excluding temporary marketing and sales discounts or offers.
Forty-five days before any price changes or additional charges are
to take effect, a grantee shall provide the City with a copy of the
proposed notification for subscribers so that the City may review
the notice's text for accuracy.
C. No charges to be made to subscriber for repair of equipment or service
disconnection. A grantee shall not, except to the extent expressly
permitted by law, impose any fee or charge on any subscriber for:
(1) Any
service call to said subscriber's premises to perform any repair or
maintenance work related to grantee-owned equipment necessary to receive
service, except any such work which was necessitated by a negligent
or wrongful act of said subscriber; or
(2) The
disconnection of any services to a subscriber, provided that a grantee
may impose appropriate charges if, at the time of disconnection, some
or all of the grantee's equipment is not returned to the grantee or
the subscriber has not paid all outstanding fees and charges due to
the grantee.
D. Grantee to furnish service to each person in franchise area making
request for service. A grantee shall furnish and maintain services
to each person within the franchise area who makes a bona fide request
to receive any service that is based upon the requirements of this
Part 4. Nothing in a franchise agreement shall limit the right of
the grantee to deny service to any household or individual which has
a negative credit or service history with the grantee, which may include
nonpayment of bills or theft or damage to the grantee's equipment,
or who has threatened or assaulted employees of the grantee in the
course of their employment. When service is denied, the grantee will
give written notice to the subscriber of his/her right to appeal to
the City the grantee's decision to deny service, and of the City's
right to reverse the grantee's decision in instances where the grantee
has acted unreasonably.
E. Basic service charges must be applied on nondiscriminatory basis.
All charges for basic service must be applied on a nondiscriminatory
basis. A grantee may, however, conduct promotional campaigns in which
rates are discounted or waived, and may offer bulk rate discounts
for multiple-unit dwellings, hotels, motels, and similar institutions.
The franchise renewal process of the City of Augusta shall be
in accordance with § 626 (47 U.S.C. § 546) of
the Communications Act of 1934, as amended, and with all other applicable
state and federal laws.
Whenever a franchise or contract shall set forth any time for
an act to be performed by or on behalf of the grantee, such time shall
be deemed to be of the essence, and any failure of the grantee to
perform within the time allotted shall always be sufficient grounds
for the City to invoke liquidated damages or initiate procedures leading
toward the revocation of a franchise.
This Part 4 shall become effective 30 days from and after its
passage (March 7, 1994).
[Added 2-5-1996 by Ord.
No. 342; amended 2-20-2007 by Ord. No. 031; 3-19-2007 by Ord. No. 051; 11-15-2012 by Ord. No. 12-172]
A. Established. There is hereby established a Strategic Communications
Committee, which shall be responsible to the Mayor and Council for
overseeing the performance of the City's cable television franchise
under the franchise currently in effect, and for the establishment
and operation of the education and government channels provided for
under that franchise. The Committee shall also advise the Mayor and
Council with respect to such other telecommunications issues as wireless
and broadband internet access, cable, traditional and cellular telephones,
satellite communications, and the various social media such as Facebook
and Twitter, as requested of it by the City Council.
B. Number and qualifications. The Committee shall consist of seven members,
who shall be appointed by the Mayor with the advice and consent of
the Council, and one of whom shall be a member of the Augusta School
Board and one a member of the Council. All members of the Committee
shall be residents of the City of Augusta. The Director of Community
Services, or designee, and the Augusta Public Schools Business Manager,
or designee, shall be ex officio members, without vote. All Committee
members shall serve without compensation.
C. Terms. Members shall be appointed for three-year terms, with two
members appointed each year; and during one year three members shall
be appointed to retain the seven-person Committee. Members may serve
multiple terms.
D. Officers and their terms. The Mayor shall appoint a member to serve
as the Committee Chair, with the advice and consent of the Council.
The Chair shall preside at all Committee meetings. The term of the
Chair shall be coterminous with the term of the Chair as a member.
The Chair may resign as Chair without resigning as a member, in which
case the Mayor shall promptly nominate another member to serve as
Chair. The Committee may establish other offices, prescribe the duties
and establish the terms of those offices, and choose from among its
members those who shall serve as those other officers. Officers need
not be sworn as such. In the absence of any officer, a member may
be chosen to serve pro tempore.
E. Meetings. The Committee shall meet not fewer than four times in any
twelve-month period and may at any meeting establish the date of its
next meeting. The Chair, at the Chair's discretion, may call a meeting
of the Committee, and not less than 1/3 of the members, acting together,
may call special meetings; in either case, notice by mail or telephone
shall be given to all Committee members. At any meeting, a quorum
of the Committee shall consist of a minimum of four members.
F. Bylaws. The Committee may by majority vote of those present at any
meeting adopt and amend bylaws governing the conduct of its meetings
and establishing additional offices. The Committee may provide by
bylaw for forfeiture of membership and of any office held, for cause
defined in those bylaws, and may establish such subcommittees and
advisory committees as it may desire.
G. Policies and procedures. The Committee shall, after notice and public
hearing, and after an opportunity for the public to submit written
comments, adopt policies and procedures governing the education and
government channels authorized under the current cable TV franchise
agreement. The policies and procedures shall become effective upon
approval by the Council.
H. Duties and powers. The Committee shall have all powers necessary
to the implementation of its duties.
I. Franchisee's funding of education and government channels. Franchise
funds paid to the City of Augusta by its cable television franchisee
to further the development and operation of the education and government
channels, to the extent appropriated by the City Council, shall be
disbursed in accordance with established municipal procedures.
J. Reports required. The Committee, through its Chair, shall submit
to the Mayor and Council, with a copy to the City Manager, a written
report of its activity, together with any recommendations it believes
appropriate, not less than once in every six months after its establishment.
Minority reports may be submitted together with the Committee's reports.
K. Separate fund established. The Committee shall have the authority
to receive monies from the operation of the City's education and government
channels and from grants and contributions. The Committee shall determine
a schedule for any fees to be charged in the use of these channels.
The revenues from all sources of income related to operation of these
channels shall be deposited with the City Treasurer in a separate
fund, to be designated the "Cable TV Fund."
L. Budget; expenditures. The Committee shall prepare annually a budget
to meet the financial needs for operation of the City's cable TV channels,
to be submitted to the Council for approval. Revenues, to include
funds from the Cable TV Fund as recommended by the Committee, will
be expended for general operation, improvement and maintenance of
equipment and facilities, and the development and delivery of cable
TV programming on the City's education and government channels. Unexpended
funds in the Cable TV Fund shall not lapse at fiscal year end, but
shall be carried forward from year to year.
M. Cooperation. All municipal departments and agencies shall cooperate
and assist the Committee, subject to operational and other priorities
and the availability of funds, in the performance of its duties. The
City Manager or the Manager's designee may coordinate any cooperative
overtures or efforts. Specifically, the Director of Community Services,
or designee, shall assist the Committee in the preparation of the
Committee's budget, the reporting of its financial and other activity
to the City Council, the general oversight of the receipt and expenditure
of Committee funds, and the discharge of the Committee's responsibilities.